Robert Ssuuna, one of the Ugandan economists, has said that the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) is a permanent fixture, as it’s aimed at closing the tax loopholes and broadening the tax base. He noted that integrating systems that ensure everyone contributes their fair share of taxes is crucial and that the sooner Ugandans accept EFRIS, the better.
According to Ssuuna, traders are accustomed to handwritten receipts, so expecting them to quickly adapt to the EFRIS system is not possible, but gradual enforcement is key. He added that a significant portion of Uganda’s business community lacks familiarity with technological mechanisms.
“EFRIS is a permanent fixture; the sooner we accept it, the better, in our quest to close tax loopholes and broaden the tax base. Incorporating systems that ensure everyone contributes is crucial,” Ssuuna said.
Ssuuna made the remarks while appearing on local television on April 15, 2024, alongside Mark Ruhindi, a tax lawyer, and John Walugembe, the Executive Director of the Federation of Small and Medium Enterprises (FSMES), to discuss the economics behind broadening the tax base in Uganda.
Ruhindi noted that if the business owners do not embrace the EFRIS system, they will be hindering their businesses’ growth potential.
“There is no denying that fact; the sooner business leaders and our economy adapt to EFRIS, the better off we all are,” Ruhindi said.
However, Walugembe noted that the Uganda Revenue Authority (URA) is directing its smack towards buyers, saying that it appears URA is exploiting people’s ignorance and taking advantage of their lack of understanding for its own profit-driven agendas.
Walugembe said that URA lacked diplomacy in execution by deploying an army; soldiers are trained to follow orders, adding that such tactics, especially among civilians, may not be the most effective or appropriate.
“The primary responsibility rests with URA; as people lack adequate education on tax matters, there is a significant gap in diverse educational efforts,” Walugembe said.
He further noted that, with EFRIS necessitating online operations, URA has failed to supply the necessary tools and questioned why the taxpayer has to cover the cost of acquiring the device to fulfill their tax obligations.
According to URA, EFRIS is meant to improve and reduce the cost of compliance through improved record-keeping among taxpayers and alleviate tax administration shortfalls while promoting compliance efficiency.
